Section A

Which of the following best describes the primary role of the IFRS Interpretations Committee (IFRIC)?

Answer options:

To issue new IFRS Standards when major gaps in accounting practice are identified.

To enforce compliance with IFRS Standards among listed entities globally.

To provide timely guidance on newly identified financial reporting issues not specifically addressed in IFRS Standards.

To appoint members to the International Accounting Standards Board (IASB).

How to approach this question

Recall the structure of the IFRS Foundation. The IASB sets standards, the Trustees appoint members, and IFRIC handles specific, narrow interpretative issues.

Full Answer

C.To provide timely guidance on newly identified financial reporting issues not specifically addressed in IFRS Standards.✓ Correct

The IFRS Interpretations Committee (IFRIC) is the interpretative body of the IFRS Foundation. Its mandate is to review widespread accounting issues that have arisen within the context of current IFRS Standards and to provide timely guidance (IFRIC Interpretations) on those issues to promote consistent application.

Common mistakes

Confusing the role of IFRIC with the role of the IASB (standard setting) or local regulators (enforcement).

Question 14 All questions Question 16

Practice the full ACCA FR — Financial Reporting Practice Exam 4

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